Tech View: Nifty50 negates lower high-low, but bias stays negative

The index is likely to see a narrow range despite Thursday’s F&O expiry, said analysts, who believe the bias remains negative for now.

Chandan Taparia of Motilal Oswal Securities said that while the index negated its lower high-low formation, follow up buying was missing.

“Now the index remains below 17,200. Any bounce could attract selling towards 17,000 and 16,850 levels,” he said.

The hurdle can be seen at 17,250 and 17,350 levels,” Taparia added.

Shrikant Chouhan of Kotak Securities said that the narrow-range activity is likely to continue in the near future.

“For the short term traders, 17,000 is the immediate support and 17,225 would be the key resistance level. One can expect a pullback rally up to 17,150-17,175 levels, if the Nifty trades above 17,000. However, if the index slips below 17,000, further correction is possible up to 16,950-16,850,” he said.

Independent Anlayst Manish Shah expects a prolonged narrow range sideways action in the 17,000-17,500 region for some more time.

For the day, the index closed at 17,063.25, 28.95 points or 0.17 per cent lower.

“In case, Nifty50 slips below 17,000, weakness may extend to 16,900-16,840 levels. But if Nifty50 sustains above the 17,220 level, it may test 17,300-350 levels. Traders are advised to remain neutral on the index,” said Mazhar Mohammad of Chartviewindia.in.